If the issue is that the wire itself is too long, then there is your problem.
But that was not what I was saying here, at all..
I actually can't quite wrap my head around how you made that conclusion..
So for the sake of clarification, I'll try again.
Firstly, the "arm" in the picture that I posted, that is the "Clutch arm". This is what's engaging and disengaging your clutch every time you operate the Clutch lever on the handlebar, which happens through the wire that connects them both.
So this Clutch Arm of yours, when it's fully out and has engaged the clutch, it needs to stay in the position as shown in the picture I posted.
Which means it's still under tension in that position, and it's supposed to be.
But in your case, you have simply connected the wire onto the clutch arm when it's aaaaall the way out, meaning it has no tension on it at all.
Don't you see the difference if you compare your picture against mine? The issue is right there.